2 Approved Answers

Mark B
answered on February 05, 2012

3 Ratings,
(9
Votes)

5. Rice Corporation currently operates two divisions which had operating results last year as follows: West Division Troy Division Sales $600,000 $300,000 Variable costs 310,000 200,000 Contribution margin 290,000 100,000 Traceable fixed costs 110,000 70,000 Allocated common corporate costs 90,000 45,000 Net operating income (loss) $ 90,000 ($15,000) Since the Troy Division also sustained an operating loss in the prior year, Rice's president is considering the elimination of this division. Troy Division's traceable fixed costs could be avoided if the division were eliminated. The total common corporate costs would be unaffected by the...

decision. If the Troy Division had been eliminated at the beginning of last year, Rice Corporation's operating income for last year would have been: a. $15,000 higher b. $45,000 lower c. $30,000 lower d. $60,000 higher Contribution margin $100,000 Less: traceable fixed costs 70,000 Segment margin of Troy Division $ 30,000 operating income would have been $30,000 less without thesegment margin contributed by the Troy Division

1. Modern Corporation has two divisions: East and West. Prepare a contribution margin income statement segmented by division. The revenue for East was $5,000,000 and West was $3,000,000. The variable...

Recent Questions in Financial Accounting

Students are required to form a group from 2 to 5 members to study, undertake research, analyse and conduct academic work within the areas of business finance covered in learning objectives 1, 3, 4, 5, 8, 10 & 11. The assignment should examine the...
Posted
4 hours ago

Searching for and Recovering Digital Photograph Evidence In this section, you learn how to use Autopsy for Windows to search for and extract (recover) possible evidence of JPEG files from the USB drive the EMTS manager gave you. The search string to...
Posted
11 hours ago

1. On January 1, 2010 when the market rate for bond interest was 14%, Luba Corporation issued bonds in the face amount of $500,000, with interest at 12% payable semiannually. The bonds mature on December 31, 2020, How much of the discount should be...
Posted
yesterday

CASE STUDY 1 Jerry and Jenny Jones 45 Trouble Street, Thornbury Jerry and Jenny Jones approach you for some financial planning advice. The couple earn a good level of combined income and enjoy a very comfortable lifestyle. They have accumulated a few...
Posted
yesterday

ACC 103 Assignment Question T1 19 This assignment will contribute 25% of student’s final mark. The assignment is due on Sunday, 2 June 2019 (week 10) at 11:59 PM Students are to form teams of up to Three (3) members. You should give a careful...
Posted
yesterday

ACC 103 Assignment Question T1 19 This assignment will contribute 25% of student’s final mark. The assignment is due on Sunday, 2 June 2019 (week 10) at 11:59 PM Students are to form teams of up to Three (3) members. You should give a careful...
Posted
yesterday

Students are required to, follow the instructions by your lecturer to confirm any relevant information. You also need to follow any relevant announcement on Blackboard that confirm the date and time. The individual assignment will assess students on...
Posted
2 days ago

J. Fisher, White House, Bolton, is selling the following items at the retail prices as shown: plastic tubing at £1 per metre, polythene sheeting at £2 per length, vinyl padding at £5 per box, foam rubber at £3 per sheet. She makes the following...
Posted
2 days ago